Company Law

A company’s prospectus serves as a critical document that provides potential investors with key information about the company’s operations, financial position, and future prospects. Since investment decisions are heavily influenced by the contents of a prospectus, any false or misleading statements in it can cause financial harm to investors. Section 35 of the Companies Act, […]

When a company faces insolvency or enters liquidation, one of the first aspects under review is the conduct of its directors prior to the financial collapse. This scrutiny includes assessing any transactions that might have unfairly benefited certain creditors—these are termed preferential payments. In such cases, the role of the liquidator becomes crucial, as they

Section 198 of the Companies Act, 2013, provides guidelines for determining the remuneration of 16 key managerial personnel for a financial year, as specified under Section 197. The provisions under subsection (2) outline the sums to be credited, whereas subsection (3) specifies amounts that shall not be considered as credits. Further, subsections (4) and (5)

Every company is required to conduct an Annual General Meeting (AGM) as per Section 96 of the Companies Act, 2013, except for one-person companies. The AGM is scheduled on a fixed date each year to review past performance and discuss future plans. However, certain urgent matters arise outside the AGM cycle that require immediate attention.

Section 31 of the Companies Act, 2013, introduces the concept of a shelf prospectus, a significant advancement in the regulatory framework governing securities issuance in India. This provision allows certain classes of companies to issue securities multiple times within a specified period without the need to file a fresh prospectus for each offering, thereby streamlining

The Articles of Association (AoA) is a fundamental document that defines a company’s nature, purpose, and operational framework. Along with the Memorandum of Association, it constitutes the company’s legal foundation. The AoA must be submitted at the time of incorporation and outlines the responsibilities of directors, the type of business the company will undertake, and

The Doctrine of Constructive Notice is a fundamental principle in company law that places an obligation on individuals and entities dealing with a company to be aware of its Memorandum of Association (MOA) and Articles of Association (AOA). These documents, once registered with the Registrar of Companies (RoC), become public documents and can be accessed

In corporate law, legal doctrines play a crucial role in defining the relationship between companies and those who deal with them. Two fundamental principles in this domain are the Doctrine of Constructive Notice and the Doctrine of Indoor Management. While the Doctrine of Constructive Notice protects companies by assuming that outsiders are aware of the

This article has been written by CA Bhuvnesh Goyal. This article provides a detailed analysis and understanding of provisions and laws related to “Reduction of Share Capital” Section 66 of the Companies Act, 2013 deals with the reduction of share capital by companies and applies to companies limited by shares or guarantee with share capital.